We provide corporate finance services to companies that can increase valuation significantly through deployment of the capital to be raised or in transactions that provide liquidity to owners.
Transaction Size. We focus on all levels of equity and debt of at least $5 million up to approximately $25 million. Placements may be co-managed with a strategic partner, particularly in the case of larger financings. Target Client. Our ideal growth stage corporate finance client has an experienced management team, initial revenues and high growth potential with a need for capital to expand production and distribution. Such clients anticipate a liquidity event (acquisition or initial public offering) within three to five years. An earlier stage company is an appropriate client provided that it has a strong intellectual property position or other proprietary rights, has eliminated substantially all technology risk and most product development risk, and after deployment of the capital raised will be able to continue as a viable operating business or be an attractive acquisition candidate if an additional round of financing is not readily available or appropriate.
Pure start-ups or companies with significant technology risk or substantial product development risk are not likely to be appropriate clients.
Structure. We may undertake financings at all levels of the capital structure but are most likely to address needs for equity or subordinated or mezzanine debt. Financings may be in traunches based on achievement of milestones but generally will involve funding commitments sufficient to sustain the company to a point where it can be operated as a viable, cash flow positive business or be appropriate for acquisition. We avoid financing designed to bring the company to a point of further capital need, which could occur at a time when capital is not available.
Financings are on a best efforts basis to private equity funds, hedge funds, venture capital or other risk capital sources, corporate affiliates, very high net worth individuals or strategic investors. Intermediary. We act as an intermediary, not a principal, in corporate finance transactions.
Fees. In a corporate finance engagement, We receive a monthly retainer, success fees payable at closing of the transaction, and warrants.
Regulatory Charles H. Troe and Kahlil Read are registered representatives of Bridge Capital Associates, Inc., Member FINRA SIPC.
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